The EU has offered the United States a “zero-for-zero” tariff scheme, European Commission President Ursula von der Leyen said Monday, seeking to avoid a tat-for-tat trade war.
“We have offered zero-for-zero tariffs for industrial goods as we have successfully done with many other trading partners. Because Europe is always ready for a good deal. So we keep it on the table,” she told a press conference alongside Norwegian Prime Minister Jonas Gahr Støre.
DB2
Not bad, is the EU trying to call the US‘ bluff?
Will the response be enthusiastic, or indiscriminate whining about non-tariff barriers like minimum food and health standards, and the blatantly unfair (for unspecified reasons) VAT system?
“Free trade” improves consumer choice, but, when some players offer dramatically lower operating costs, the “sucking sound” starts. For the EU, it started with the eastern countries, with labor rates one half, or one third, that of western countries. But the “jobs” are starting to move to Mexico, which the EU also has a free trade agreement with. I suggested some time ago, that if the Mexican factories of companies like VW, Stellantis, LG, Samsung, Whirlpool, are locked out of the US market by tariffs, they will pivot to shipping to the EU, and will have the same corrosive effect on the European industrial base that they have had on the US.
Steve
Guess not:
WASHINGTON, April 7 (Reuters) - Peter Navarro, President Donald Trump’s top trade adviser, on Monday dismissed tech-billionaire Elon Musk’s push for “zero tariffs” between the United States and Europe, calling the Tesla CEO a “car assembler” reliant on parts from other countries.
What a victory for Europe that would be. We already have a $130B trade deficit with them, and this does nothing to address the more structural issues like food safety, etc. which keep US products off European shelves. They’re not gonna be importing cars or jetliners anytime soon, that’s for sure.
In other news, the great negotiator is now threatening China with an additional 50% tariff unless they remove their “matching” tariffs announced last week. This would put over a 100% tariff on everything from China. But that won’t stoke inflation, nosiree!
Tig is not intelligent enough to bluff
True. We‘ll still don’t like the US‘ hormone beef and chlorinated chicken. The latter less because of them having been chlorinated, but for the reasons they had to be chlorinated in the first place.
We did import quite a number of Teslas… until recently, ,for somewhat self-inflicted reasons:
https://www.graphicnews.com/en/pages/46754/business-tesla-sales-crash-and-burn-in-europe
Jetliners…:
The company has delivered 5,500 commercial aircraft to more than 130 European customers in the last 60 years and Boeing’s advanced defence platforms are in service with 25 European armed forces. In addition, Boeing provides unparalleled aerospace services to more than 350 European customers.
Now if Boeing ever focused on building good and safe planes again…
However,
Lockheed Martin’s F-35 fighter jet sales likely to see decline as Europe, Canada look for alternatives
Canadian Prime Minister Mark Carney has directed the country’s defence minister to look for alternatives of F-35 in the wake of the trade war initiated by US President Donald Trump.
Agreed. But is an excellent first offer. And who knows where negotiations might take the terms.
Europe is the vassal of the US like Canada and Australia are. They will have to comply to the US. The French may not agree but they can’t do much.
Well, the stated objective of the tariffs is to help replace the revenue lost from repeal of the income tax. An “arty” deal with any trading partner makes it harder to justify repealing the income tax.
Steve
Europe’s distaste for USian adulterated foods were one of the things TIG specifically talked about. I supposed the Europeans could leave it up to customers. Post a big sign in the markets “this is USian food, it contains contaminates that the EU says are unsafe, but the US insists are perfectly acceptable in the pursuit of profit maximization.”
Steve
Lol. Perhaps with the add-on: ‚Life expectancy in the US is only a few years shorter’. No doubt that would be considered a ‚non-tariff trade barrier‘ 
.
And there I thought it was about employment for US blue collar workers that saw their jobs offshored to China, based on (ill-conceived?) US policy choices 40 years ago.
So many objectives, so few that can be prioritized. Who will be thrown under the bus?
On Monday, White House economic adviser Peter Navarro said in an interview with CNBC that tariffs will pay for the biggest tax cut in American history.
“Don’t get panicked out by all of this,” Navarro said. “The broadest-based tax cut in American history is coming in a matter of months, so any discussions of recession seem silly when you factor that in.”
How about “Life expectancy in the US is only a few years shorter. Isn’t the ease and comfort of the “JCs” worth that sacrifice on your part?”
Steve
Consider the different priorities that have been discussed here, today. Musk, who has significant manufacturing interests, wants zero tariffs. Lutnick, who produces nothing, and skims off of the economy, wants an income tax cut.
Sounds like we need a cage fight. with one knife.
Steve